ATO Interpretative Decision

ATO ID 2001/630 (Withdrawn)

Goods and Services Tax

GST and sunscreen preparations with a sun protection factor (SPF) rating of 15 or more
FOI status: may be released

This ATO ID is withdrawn, as it is no longer necessary. The ATO view expressed in this ATO ID is a straight application of the law and does not contain an interpretative decision. The issue addressed in the ATO ID is covered by web guidance.

This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Is the entity, a supplier of sunscreen preparations, making a GST-free supply under subsection 38-47(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act), when it sells sunscreen preparations with a sun protection factor (SPF) rating of 15 or more?

Decision

Yes, the entity is making a GST-free supply under subsection 38-47(1) of the GST Act when it sells sunscreen preparations with a sun protection factor (SPF) rating of 15 or more.

Facts

The entity is a supplier of sunscreen preparations. The entity sells a number of different types of sunscreen preparations.

The products are for dermal application, that is, for use on a person's skin.

All of the products have an Australian Register of Therapeutic Goods Number. As such, the products are goods included in the Australian Register of Therapeutic Goods under the Therapeutic Goods Act 1989.

Some of the products also contain insect repellent.

All of the products have an Australian Register of Therapeutic Goods Number. As such, the products are goods required to be registered or listed, or are goods in a class of goods required to be registered or listed under the Therapeutic Goods Regulations 1990.

There is no agreement between the entity and the recipient that the supply will not be treated as a GST-free supply under subsection 38-47(2) of the GST Act.

The entity is registered for goods and services tax (GST).

Reasons for Decision

Under subsection 38-47(1) of the GST Act a supply of health goods is GST-free if it is a supply of goods of a kind that the Health Minister, by determination in writing, declares to be goods the supply of which is GST-free.

For the purposes of subsection 38-47(1) of the GST Act the Health Minister has made the GST-free Supply (Health Goods) Determination 2005 (the Determination).

Pursuant to the Determination, sunscreen preparations for dermal application that:

•: are marketed principally for use as a sunscreen;
•: have a sunscreen protection factor rating of 15 or more; and

are required to be included in the Australian Register of Therapeutic Goods, or are goods in a class of goods required to be included in the Australian Register of Therapeutic Goods under the Therapeutic Goods Act 1989, may be GST-free under subsection 38-47(1) of the GST Act.

All of the products sold by the entity are for dermal application, are principally marketed for use as sunscreen, and have a SPF rating of 15 or more.

Additionally, all of the products have an Australian Register of Therapeutic Goods Number and as such are goods required to be included, or are goods in a class of goods required to be included under the Therapeutic Goods Act 1989. Consequently, the supply of these products satisfies the requirements of the Determination.

Therefore, the entity is making a GST-free supply under subsection 38-47(1) of the GST Act when it supplies sunscreen preparations with a SPF of 15 or more.

[Note: In this case, some of the products that contain insect repellent are marketed principally for use as a sunscreen preparation with insect repellent benefits rather than an insect repellent with sun protection benefits. If the products were marketed principally for use as an insect repellent the supply of the products would not be GST-free under subsection 38-47(1) of the GST Act.]

[HISTORY: This ATO ID was amended on 6 June 2007. The amendment was made to update the reference to the current GST-free Supply (Health Goods) Determination. This amendment does not change the decision applied under the previous Determination.]

Date of decision: 11 October 2001

Legislative References:
A New Tax System (Goods and Services Tax) Act 1999
subsection 38-47(1)
subsection 38-47(2)

Related ATO Interpretative Decisions
ATO ID 2001/102

Other References:
GST-free Supply (Health Goods) Determination 2000 (No. 2)

Keywords
Goods & services tax
GST-free
GST health
Section 38-47 - Other GST-free health goods

Siebel/TDMS Reference Number: CW243225

Business Line: Indirect Tax

Date of publication: 29 November 2001

ISSN: 1445-2782

history

	Date:	Version:
	11 October 2001	Original statement
You are here	20 May 2022	Archived

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